Panama does not mandate functional separation for operators with significant market power (SMP) in the telecom market. However, there is an obligation of accounting separation since 1999. Resolution JD-1334 of 1999 (Resolución No. JD-1334 - Por medio de la cual se dictan los parámetros para establecer posición dominante para la prestacion de servicios públicos de telecomunicaciones con fines comerciales) establishes the criteria which determine if a given company has significant market share. It is calculated in terms of Gross Revenue that exceeds by more than 25% or more the other competitors of the respective service.

Law No. 35 provides a framework for effective protection of trade secrets. Title IV the Industrial Property Law, regulates commercial and trade secrets and holds accountable whoever infringes these provisions.

There is an obligation for passive infrastructure sharing in Panama to deliver telecom services to end users. It is practiced in the mobile sector and in the fixed sector based on commercial agreements. As established by Art. 1 of the Resolution AN No. 2848-Telco and Annex A on Regulations for the installation, operation and shared use of towers and/or structures that support telecommunications service antennas.

Panama has ratified the World Intellectual Property Organization (WIPO) Copyright Treaty.

Panama has ratified the World Intellectual Property Organization (WIPO) Performances and Phonogram Treaty.

Panama has a clear regime of copyright exceptions that follows the fair use, which enable the lawful use of copyrighted work by others without obtaining permission. Law No. 64 provides the basic concepts as well as the limitations and exceptions to copyright, expressed in Arts. 26 to 73, which also include a reference to fair dealing.

It is reported that the rate of unlicensed software installation in Panama was 71% in 2017 (above the 52% rate of the Latin American countries) for an estimated commercial value of USD 112 million. Yet, in 2012, Panama updated its legislative framework to improve standards for protecting and enforcing IP protections with Law No. 64 on copyright. This included enhanced protections for patents, trademarks, digital copyrighted products such as software, music, text, and videos, and other measures to deter piracy and counterfeiting.

According to the Art. 29 of the Law No. 35, a patent applicant shall file the application through a lawyer office in Panama.

Panama is a party to the Patent Cooperation Treaty (PCT).

It is reported that there is a need to increase transparency and accountability in the judicial process and government procurement and that there is a historical inability of the Panamanian government to pay suppliers and contractors that is a liability that foreign companies endure when doing business with the government. On the other hand, allegations of corruption surrounded purchases made during Panama’s State of Emergency due to the COVID-19 pandemic, when procurement procedures were abbreviated to permit rapid responses.

Panama is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the WTO GPA since 1997.

Art. 12 of Law No. 22 states that in those minor procurements in which several bidders participate, the local company must have priority in the award, provided that it complies with all the requirements and demands of the bidding documents and the proposed price is not greater than 5% in relation to the lowest price proposal submitted by a non-local company, in which case the one with the best price must be chosen. Art. 6 of Executive Decree No. 439 further elaborates on the provision mentioned above.

Art. 10 of Law No. 22 provides that the State must promote the competitive participation of micro, small and medium-sized enterprises in certain acts of contractor selection carried out by public institutions. Art. 88 of Executive Decree No. 439 further elaborates on the provision mentioned above, stating that in the case of minor procurement acts, the entity must select the proposal submitted by the micro or small enterprises, provided that it complies with the requirements and demands of the tender documents and the proposed price is not greater than 5 % in relation to the lowest price proposal submitted by another type of enterprise.

Art. 13 of Law No. 22 states that in the acts of selection of contractors for the acquisition of goods and services, the bidding entities may carry out public acts, for which they must consider, in the first instance, the viability, availability and quality of the goods and services produced within the territory of Panama. Arts. 5 and 7 of Executive Decree No. 439 further elaborate on the provisions mentioned above.

Panama is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996, but is not a signatory of its 2015 expansion (ITA II).